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struggling Precley Pizza bought a used Ford deivery van on January 2, 2021, for 322.000. The van was expected to remain in servoe for four
struggling
Precley Pizza bought a used Ford deivery van on January 2, 2021, for 322.000. The van was expected to remain in servoe for four yoars (80,000 miles). At he and of as usefe ife, Prasiey management estinated that the van's residual value would be $2.000. The van traveied 32,000 miles the frat year, 20,000 miles the second year, 15,000 miles the third year, and 5,000 mies in the fourth year. Read the reguinments. Requirement 1. Prepare a scheduse of depreciation expense pee year for the van under the thee deprecation reethots Prepare a schedule of depredation expense per year for the val under the stragti-line method, (Conplesis all input fielifi. Enter a 0 for any zaro balancest.) Requirements 1. Prepare a schedule of deprecisica expense per year for the van under the three depreciation methoda. (For unzs.of-production and double-declining-batance methods, round to the nearest two decimal places after each atep of the calculation.) 2. Which method best tracks the wear and tear en the van? 3. Which method would Presley preler to use for inconse tax purposes? Explain your reasoning in detas Step by Step Solution
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